Samsung C&T expands into bio-diesel business
- Acquisition of Indonesian palm plantations with total area equivalent to 40% that of Seoul
- Goal to reach annual production capacity of 800,000 tons of bio-energy source material and products by 2012
- Continued expansion of traditional (oil, gas) and new and renewable energy as the two main pillars of energy and resource business
Samsung C&T Corporation Trading and Investment Group (President and CEO: Sung-ha Chi) completed the acquisition of two palm plantations in Indonesia on July 21. The acquisition marks the company’s entrance into the bio-diesel business, ensuring it a steady supply of palm oil, the main source material of bio-diesel.
Samsung C&T Corporation jointly established S&G Biofuel Pte Ltd. with Indonesia’s Athena City Holdings, investing a total of USD 55 million into the acquisition and operation of palm plantations. The acquisition gives Samsung C&T Corporation a strong foothold in the bio-diesel business as it moves further into the new and renewable energy business. The company is also strengthening its development of traditional (oil and gas) energy and resources. It recently acquired oil production assets in the Gulf of Mexico in early 2008.
The acquisition of palm plantations is part of the company’s drive to take the lead in the new and renewable energy sector, as the market for palm oil grew by an average 12% each year during the past decade, and countries around the world are strengthening development of new and renewable energy sources including bio-diesel in response to rising oil prices and in effort to reduce greenhouse gas emissions.
The plantations, located on the Indonesian island of Sumatra, cover a total area of 24,000 ha, equivalent to roughly 40% the size of Seoul and have facilities to produce over 100,000 tons of palm oil, which can be used in producing bio-diesel or as cooking oil. Beginning with supplying palm oil to bio-diesel companies around the world, the company plans a gradual expansion of operations through acquisition of additional plantations and expansion of refining facilities, establishment of bio-diesel production systems, logistical and global distribution networks.
Samsung C&T Corporation is also engaged in a bio-ethanol project involving the use of Brazilian sugar cane and Southeast Asian seaweed. The company plans to continue its expansion into the bio-energy business, with goals of attaining the capacity to produce and distribute 800,000 tons of bio-energy source material and products a year by 2012.
Samsung C&T Corporation President and CEO Sung-ha Chi explained the rationale for his company’s expansion into the new and renewable energy business by saying, “Both traditional energies such as oil and gas and new and renewable energies such as bio-energy, photovoltaic, and fuel cells are promising future business areas where we can make best use of our strengths as a general trading company and ensure the timely and stable supply of resources and energy crucial to Korea’s industrial development.”
Inquiries: Samsung C&T Corporation PR Team 02-2145-2136